Backflush costing and JIT production. The Grand Meter Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in process. Grand Meter uses a JIT production system and backflush costing with three trigger points for making entries in the accounting system:
Purchase of direct materials and incurring of conversion costs
Completion of good finished units of product
Sale of finished goods
Grand Meter’s August standard cost per meter is direct materials, $25, and conversion cost, $20. Grand
Meter has no direct materials variances. The following data apply to August manufacturing:
Direct materials purchased $550,000 Number of finished units manufactured 21,000
Conversion costs incurred $440,000 Number of finished units sold 20,000
1. Prepare summary journal entries for August (without disposing of under- or overallocated conversion costs). Assume no direct materials variances.
2. Post the entries in requirement 1 to T-accounts for Materials and In-Process Inventory Control, Finished
Goods Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.